Interesting to see the Tyres & Tubes custom index breaking out of its range and hitting new 52WH.
Q2 is generally a weaker quarter for tyre companies, but there are two key growth drivers to watch:
1. Replacement demand - typically steady and margin-accretive.
2. OEM demand - more cyclical, linked to auto sales momentum.
Q3 usually fares better than Q2, supported by festive and rural recovery trends. If OEM demand picks up, tyre businesses often act as proxy plays on the broader auto recovery.
Let’s see how things unfold - especially with strong growth guidance coming from OEMs like Mahindra in SUVs and 2-3 wheeler players in rural markets.
Disc: Not a Buy/Sell Recommendations
#customindex #q2withstockscans